SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
January 19, 2010
HANCOCK HOLDING COMPANY
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(Exact name of registrant as specified in its charter)
Mississippi 0-13089 64-0169065
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(State or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification Number)
incorporation)
One Hancock Plaza, 2510 14th Street,
Gulfport, Mississippi 39501
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(Address of principal executive offices) (Zip code)
(228) 868-4000
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(Registrant's telephone number, including area code)
INFORMATION TO BE INCLUDED IN THE REPORT
Item 2.02 Results of Operations and Financial Condition. On January 19, 2010,
Hancock Holding Company issued a press release reporting its fourth quarter and year-to-date
earnings for the periods ending December 31, 2009. A copy of this press release and the
accompanying financial statements are attached hereto as Exhibit 99.1.
Item 7.01. Regulation FD Disclosure. On January 19, 2010, Hancock Holding Company
issued a press release reporting its fourth quarter and year-to-date earnings for the periods
ending December 31, 2009. A copy of this press release and the accompanying financial
statements are attached hereto as Exhibit 99.1. This information is furnished under both Item 2.02 Results of
Operations and Financial Condition and Item 7.01 Regulation FD Disclosure. The information in this Form 8-K and
Exhibit attached hereto shall not be deemed filed for purposes of Section 18 of the Securities Act of 1934, nor
shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, except as shall be
expressly set forth by specific reference.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
Exhibit No. Description
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99.1 Earnings Release dated January 19, 2010 for Year-to-Date and
Quarter Ended 12/31/09
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Dated: January 21, 2010
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HANCOCK HOLDING COMPANY
(Registrant)
By: /s/ Paul D. Guichet
--------------------------------
Paul D. Guichet
Vice President
Investor Relations
HANCOCK HOLDING COMPANY
For Immediate Release
January 19, 2010
For More Information
Carl J. Chaney, President & Chief Executive Officer
Michael M. Achary, Chief Financial Officer
Paul D. Guichet, VP, Investor Relations & Corporate Governance
800.522.6542 or 228.563.6559
Hancock Holding Company announces preliminary earnings for 2009
GULFPORT, MS (January 19, 2010) - Hancock Holding Company (NASDAQ: HBHC) today announced preliminary net income for
the year ended December 31, 2009. Hancock's 2009 net income was $74.8 million, an increase of $9.4 million, or 14.4 percent,
from 2008's net income of $65.4 million. Diluted earnings per share for 2009 were $2.26, an increase of $0.22 from 2008's
diluted earnings per share of $2.04. Hancock's return on average assets for 2009 was 1.05 percent, compared to 1.02 percent
for 2008. These results include the impact of the Company's recent common stock offering and acquisition of Peoples First
Community Bank, which are both more fully described below.
Preliminary net income for the fourth quarter of 2009 was $31.8 million, an increase of $23.5 million, or 282.0 percent,
from the fourth quarter of 2008, and an increase of $16.6 million, or 108.8 percent, from 2009's third quarter. Diluted earnings
per share for 2009's fourth quarter were $0.89, compared to $0.26 per diluted share for the same quarter a year ago and to $0.47
per diluted share for 2009's third quarter. The Company's fourth quarter results were also impacted by the recently completed
common stock offering and acquisition of Peoples First Community Bank, which are both more fully described below.
The Company's financial results for the fourth quarter of 2009 and the year as a whole were impacted by two very significant
events. The impact of these events is summarized below:
o On October 26, 2009, the Company closed a very successful common stock offering. In connection with the offering,
the company issued 4,945,000 shares of common stock at a price of $35.50. Gross proceeds were $175.5 million, with
net proceeds of $167.3 million after expenses. The proceeds of the offering are intended to be used for general
corporate purposes, which may include financing acquisition opportunities and other expansion efforts. The offering
was significantly over subscribed (over four times) and priced among the best of all offerings for 2009.
o On December 18, 2009, the Company acquired the assets and assumed the liabilities of Panama City, FL, based Peoples
First Community Bank (Peoples First) through a purchase and assumption agreement containing a loss-sharing clause
with the Federal Deposit Insurance Corporation (FDIC). The loss-sharing clause lessens the significant credit risk
that usually accompanies a more traditional merger or acquisition. As a result of the loss-sharing clause, FDIC will
cover all acquired loans, with reimbursement of 80 percent of losses up to $385 million and 95 percent of losses
beyond $385 million. Hancock Bank acquired approximately $1.71 billion in assets and assumed $1.69 billion in
liabilities. These values are preliminary and subject to refinement for up to one year after the closing date of the
acquisition as additional information relative to the closing may become available. All of the other real estate
owned (including foreclosed real estate) was retained by the FDIC. The acquisition resulted in a pretax acquisition
gain of $33.6 million and pretax merger related expenses of $3.7 million. Peoples First has 29 branches in the Florida
Panhandle and Central Florida. With this transaction, Hancock increased the company's total banking and financial
services offices to more than 180 locations in Florida, Alabama, Mississippi, and Louisiana. The following chart
summarizes the net assets acquired:
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Prelininary Statement of Net Assets Acquired
(At Fair Market Value)
As of
December 18, 2009
Assets
Cash and due from banks $400,276
Securities 16,149
Loans and leases, net 950,430
FDIC loss share receivable 329,795
Other assets 18,616
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Total Assets $1,715,266
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Liabilities
Deposits $1,562,937
FHLB Advances 116,304
Other liabilities 15,293
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Total Liabilities $1,694,534
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Bargain Gain (after tax) $20,732
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Commenting on the Company's fourth quarter events, Hancock Holding Company President and Chief Executive Officer Carl J.
Chaney stated "The fourth quarter saw two very significant events in the long and storied history of Hancock Bank. These events
position us very favorably for future growth and prosperity. First was our common stock offering in late October. We were very
pleased with the overwhelming interest and the results the offering generated. We believe the response reflected the company's
110-year history of financial strength and stability. The proceeds generated will further position Hancock for expansion
opportunities that fit the company's strategic growth plans throughout the Gulf South region."
"The second event was that the Company was able to take advantage of a strategic growth opportunity that we had positioned
ourselves for by expanding into the Panhandle and North Central Florida regions with the acquisition of Peoples First Community
Bank, headquartered in Panama City, Florida. This was an FDIC-assisted loss sharing transaction, which reduces the significant
credit risk that usually accompanies a more traditional merger or acquisition. The Peoples First banking team shares the same
type of community commitment and core values that have distinguished Hancock since 1899. This partnership further expands
Hancock's current Florida footprint into attractive, long-term growth markets in the Florida Panhandle, and North Central Florida,"
said Chaney.
Highlights & Key Operating Items from Hancock's Fourth Quarter Results
Balance Sheet and Capital
Total assets at December 31, 2009 were $8.70 billion, up $1.89 billion, or 27.8 percent, from $6.81 billion at September 30,
2009. Compared to December 31, 2008, total assets increased $1.53 billion, or 21.3 percent. The overall increase in total assets
from September 30 was due to the acquisition of Peoples First headquartered in Panama City, Florida. Hancock continued to
remain well capitalized with total equity of $837.7 million at December 31, 2009, up $228.2 million, or 37.4 percent, from
December 31, 2008. Hancock's tangible equity ratio at December 31, 2009, was 8.85 percent, up 14 basis points from the
8.71 percent reported at September 30, 2009.
Excluding Peoples First, at December 31, 2009, total assets were $7.09 billion, up $289.8 million, or 4.3 percent, from
$6.81 billion at September 30, 2009. Compared to December 31, 2008, total assets decreased $72.5 million, or 1.0 percent. The
overall increase in total assets from September 30 was due primarily to the funds received through an increase in period end
deposits. Hancock continued to remain well capitalized with total equity of $798.8 million at December 31, 2009, up $144.1
million, or 22.0 percent, from September 30, 2009.
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Hancock's fourth quarter capital and balance sheet-related ratios including the acquisition of Peoples First Community Bank
are as follows:
Consolidated
Hancock Holding Company
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Capital and Balance Sheet-Related
Common equity (period-end) as a percent of total assets (period-end) 9.63%
Leverage (Tier I) ratio 10.65%
Tangible common equity ratio 8.85%
Loan to deposit ratio (period-end) 71.07%
Loan Growth
For the quarter ended December 31, 2009, Hancock's average total loans were $4.4 billion, which represented an increase
of $187.7 million, or 4.5 percent, from the same quarter a year ago and was up $73.6 million, or 1.7 percent, from the third
quarter of 2009. Period-end loans were up $862.0 million, or 20.3 percent, from last quarter. The increase in period-end loans
was in commercial/real estate (up $420.2 million, or 15.3 percent), mortgage loans (up $337.0 million or 83.6 percent), and
direct consumer loans (up $129.7 million or 21.7 percent). This increase was partially offset by a decrease in indirect
consumer loans (down $27.1 million, or 6.8 percent).
Excluding Peoples First, for the quarter ended December 31, 2009, Hancock's average total loans were $4.2 billion, which
represented an increase of $53.4 million, or 1.3 percent, from the same quarter a year ago and was down $60.8 million, or 1.4
percent, from the third quarter of 2009. Period-end loans were down $86.7 million, or 2.0 percent, from last quarter. The
decrease in period-end loans was in commercial/real estate loans (down $58.4 million, or 2.1 percent), indirect consumer
loans (down $27.1 million, or 6.8 percent), and mortgage loans (down $5.7 million or 1.3 percent). This decrease was
partially offset by an increase in finance company loans (up $2.2 million or 2.0 percent) and direct consumer loans (up $2.2
million or 0.4 percent).
Deposit Growth
Period-end deposits for the fourth quarter were $7.20 billion, up $1.26 billion, or 21.3 percent, from December 31, 2008,
and were up $1.78 billion, or 32.8 percent, from September 30, 2009. The increase in period-end deposits as compared to
September 30, 2009, was due primarily to the acquisition of People's First. Average deposits were up $56.5 million, or 1.0
percent, from the third quarter of 2009. The increase in average deposits was reflected in time deposits (up $141.7 million),
interest bearing transaction deposits (up $66.4 million), and non-interest bearing deposits (up $12.4 million). A decrease in
interest bearing public fund deposits of $164.1 million offset some of the increase.
Excluding Peoples First, period-end deposits for the fourth quarter were $5.66 billion, down $267.0 million, or 4.5
percent, from December 31, 2008, but were up $243.8 million, or 4.5 percent, from September 30, 2009. The increase in period-end
deposits as compared to September 30, 2009, was primarily in interest bearing public fund deposits (up $156.8 million), interest
bearing transaction deposits (up $44.8 million), and noninterest bearing transaction deposits (up $72.7 million). Average
deposits were down $162.0 million, or 2.9 percent, from the third quarter of 2009. The decrease in average deposits was reflected
in interest bearing public fund deposits (down $163.9 million), time deposits (down $8.8 million), and non-interest bearing
deposits (down $0.6 million). An increase in interest bearing transaction deposits of $11.3 million slightly offset the decrease.
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Asset Quality
Net charge-offs for 2009's fourth quarter were $13.6 million, or 1.24 percent of average loans, up $0.1 million from the
$13.5 million, or 1.24 percent of average loans, reported for the third quarter of 2009. Non-performing assets as a percent of
total loans and foreclosed assets was 4.10 percent at December 31, 2009, up from 1.06 percent at September 30, 2009. The
aforementioned increase in non-performing assets (including non-accrual loans) was due primarily to the acquisition of
Peoples First. Non-accrual loans increased $160.3 million, while other real estate owned (ORE) increased $4.6 million compared
to the prior quarter. Loans 90 days past due or greater (accruing) as a percent of period end loans increased 5 basis points
from September 30, 2009, to 0.23 percent at December 31, 2009, again, primarily due to the Peoples First acquisition.
Hancock recorded a provision for loan losses for the fourth quarter of $15.8 million. The Company's allowance for loan
losses was $66.1 million at December 31, 2009, and $63.9 million at September 30, 2009. The ratio of the allowance for loan
losses as a percent of period-end loans was 1.29 percent at December 31, 2009, compared to 1.50 at September 30, 2009.
Additional asset quality information (inclusive and exclusive of the acquisition of Peoples First) is provided in the table below:
Consolidated Consolidated
Hancock Without
Asset Quality Information Holding Company People's First
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Non-accrual loans $195,845(a) $30,978
Foreclosed assets 14,336 13,925
Total non-performing assets $210,181 $44,903
Non-performing assets as a percent of loans and foreclosed assets 4.10% 1.07%
Accruing loans 90 days past due $11,647 $11,647
Accruing loans 90 days past due as a percent of loans 0.23% 0.28%
Non-performing assets + accruing loans 90 days past due to loans
and foreclosed assets 4.33% 1.35%
Allowance for loan losses $66,050 $66,050
Allowance for loan losses as a percent of period-end loans 1.29% 1.59%
Allowance for loan losses to NPAs + accruign loans 90 days past due 29.78% 116.80%
(a) This total preliminary non-accrual loan amount represents (i) the fair value of PF loans ($164.9 million)
that Peoples First's management had placed on non-accrual and (ii) the book value of the legacy Hancock loans ($30.9 million)
on non-accrual. Upon completion of the final purchase accounting estimates and SoP 03-3 loan scoping and cash flow
projections, this amount may be subject to change, as Peoples First loans with accretable yields will be excluded from this
amount.
Net Interest Income
Net interest income (te) for the fourth quarter increased $8.7 million, or 15.8 percent, while the net interest margin
(te) of 3.97 percent was 46 basis points wider than the same quarter a year ago. Growth in average earning assets was strong
compared to the same quarter a year ago, with an increase of $158.5 million, or 2.5 percent, mostly reflected in higher average
loans (up $187.7 million, or 4.5 percent).
With short-term interest rates down significantly from the same quarter a year ago, the Company's loan yield fell 12
basis points, pushing the yield on average earning assets down 28 basis points. However, total funding costs over the same
quarter a year ago were down 73 basis points.
Compared to the prior quarter, the net interest margin (te) expanded 11 basis points, and the level of net interest income
was up $3.0 million, or 4.9 percent. The yield on average earning assets was up 6 basis points from last quarter at 5.32 percent,
while the total cost of funds reduced by 4 basis points, primarily due to an across the board reduction in rates paid on all
interest-bearing deposits and liabilities. The most significant rate reduction was in public funds (down 21 basis points).
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Non-interest Income
Non-interest income, excluding securities transactions, for the fourth quarter was up $32.8 million, or 107.2 percent,
compared to the same quarter a year ago and was up $33.0 million, or 108.8 percent, compared to the previous quarter. The primary
factor impacting the increase in non-interest income compared to the same quarter a year ago was the acquisition gain of $33.6
million. Other factors impacting noninterest income were higher levels of secondary mortgage market operations (up $810
thousand or 128.8 percent), service charges on deposit accounts (up $347 thousand or 3.0 percent), trust fees (up $160
thousand or 4.2 percent), ATM fees (up $148 thousand or 8.8 percent), and debit card and merchant fees (up $91 thousand or 3.2
percent). These increases were partially offset by decreases in investment and annuity fees (down $1.2 million or 41.7 percent)
and insurance fees ($807 thousand or 19.5 percent).
The increase in non-interest income (excluding securities transactions) for the fourth quarter compared to the prior
quarter was primarily due to the acquisition gain of Peoples First in the amount of $33.6 million. Excluding the acquisition
gain, non-interest income decreased by $617 thousand compared to the prior quarter. Factors contributing to the decrease were
investment and annuity fees (down $345 thousand or 17.2 percent), insurance fees (down $197 thousand or 5.6 percent), trust fees
(down $71 thousand or 1.8 percent), secondary mortgage market operations (down $43 thousand or 2.9 percent), and ATM fees (down
$24 thousand or 1.3 percent). These decreases were offset slightly by increases in debit card and merchant fees (up $99
thousand or 3.5 percent) and service charges on deposit accounts (up $19 thousand or 0.2 percent).
Operating Expense & Taxes
Operating expenses for the fourth quarter were up $8.0 million, or 14.4 percent, compared to the same quarter a year ago,
and were $7.9 million, or 14.2 percent, higher than the previous quarter. One factor contributing to the increase from the
previous quarter and the prior year quarter was $3.7 million in merger-related expenses related to the acquisition of Peoples
First. The increase from the same quarter a year ago was reflected in higher personnel expense (up $4.4 million or 15.5 percent)
and other operating expenses (up $3.8 million or 19.6 percent). These increases were slightly offset by a decrease in
equipment expense (down $252 thousand or 9.7 percent). The increase in operating expense from last quarter was primarily
due to other operating expense (up $4.2 million or 22.6 percent) and personnel expense (up $3.7 million or 12.9 percent).
For the year ended December 31, 2009, and 2008, the effective income tax rates were approximately 23 percent and 25 percent,
respectively. The decline in the effective tax rate in 2009 was due primarily to higher levels of tax-exempt interest income and
tax credits. The fourth quarter effective tax rate was higher than previous quarters primarily due to the Peoples First
acquisition gain.
About Hancock Holding Company
Hancock Holding Company - parent company of Hancock Bank (Mississippi and Florida), Hancock Bank of Louisiana, and Hancock
Bank of Alabama - had assets of approximately $8.7 billion as of December 31, 2009. Founded in 1899, Hancock Bank recently rated
as one of the country's strongest, safest financial institutions, for more than 20 consecutive years, according to
BauerFinancial, Inc. More corporate information and e-banking are available at www.hancockbank.com.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995: Congress passed the Private Securities
Litigation Act of 1995 in an effort to encourage corporations to provide information about companies' anticipated future
financial performance. This act provides a safe harbor for such disclosure, which protects the companies from unwarranted
litigation if actual results are different from management expectations. This release contains forward-looking statements and
reflects management's current views and estimates of future economic circumstances, industry conditions, company performance,
and financial results. These forward-looking statements are subject to a number of factors and uncertainties which could
cause the Company's actual results and experience to differ from the anticipated results and expectations expressed in such
forward-looking statements.
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Hancock Holding Company
Financial Highlights
(amounts in thousands, except per share data and FTE headcount)
(unaudited)
Three Months Ended Twelve Months Ended
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12/31/2009 9/30/2009 12/31/2008 12/31/2009 12/31/2008
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Per Common Share Data
Earnings per share:
Basic $0.89 $0.48 $0.26 $2.28 $2.07
Diluted $0.89 $0.47 $0.26 $2.26 $2.04
Cash dividends per share $0.24 $0.24 $0.24 $0.96 $0.96
Book value per share (period-end) $22.74 $20.54 $19.18 $22.74 $19.18
Tangible book value per share (period-end) $20.71 $18.42 $17.02 $20.71 $17.02
Weighted average number of shares:
Basic 35,481 31,857 31,757 32,747 31,491
Diluted 35,705 32,058 32,059 32,934 31,883
Period-end number of shares 36,840 31,877 31,770 36,840 31,877
Market data:
High sales price $44.89 $42.38 $56.45 $45.56 $68.42
Low sales price $35.26 $29.90 $34.20 $22.51 $33.34
Period end closing price $43.81 $37.57 $45.46 $43.81 $45.46
Trading volume 19,538 11,676 18,544 66,346 73,843
Other Period-end Data
FTE headcount 2,240 1,903 1,952 2,240 1,952
Tangible common equity $763,029 $587,161 $540,859 $763,029 $540,859
Tier I capital $760,295 $575,856 $550,216 $760,295 $550,216
Goodwill $62,277 $62,277 $62,277 $62,277 $62,277
Amortizable intangibles $12,063 $4,996 $6,059 $12,063 $6,059
Performance Ratios
Return on average assets 1.75% 0.87% 0.48% 1.05% 1.02%
Return on average common equity 15.92% 9.38% 5.49% 11.09% 11.18%
Earning asset yield (TE) 5.32% 5.26% 5.60% 5.27% 5.97%
Total cost of funds 1.35% 1.39% 2.08% 1.50% 2.17%
Net interest margin (TE) 3.97% 3.86% 3.51% 3.78% 3.80%
Noninterest expense as a percent of total revenue (TE)
before amortization of purchased intangibles
and securities transactions 49.82% 60.81% 64.61% 58.34% 61.84%
Common equity (period-end) as a percent of total assets (period-end) 9.63% 9.62% 8.50% 9.63% 8.50%
Leverage (Tier I) ratio 10.65% 8.33% 8.06% 10.65% 8.06%
Tangible common equity ratio 8.85% 8.71% 7.62% 8.85% 7.62%
Net charge-offs as a percent of average loans 1.24% 1.24% 1.20% 1.17% 0.57%
Allowance for loan losses as a percent of period-end loans 1.29% 1.50% 1.45% 1.29% 1.45%
Allowance for loan losses to NPAs + accruing loans 90 days past due 29.78% 120.25% 133.16% 29.78% 133.16%
Average loan/deposit ratio 77.89% 77.36% 74.58% 75.65% 74.75%
Non-interest income excluding
securities transactions as a percent of
total revenue (TE) 49.86% 33.31% 35.73% 39.54% 35.86%
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
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12/31/2009 9/30/2009 12/31/2008 12/31/2009 12/31/2008
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Asset Quality Information
Non-accrual loans $195,845(a) $35,558 $29,976 $195,845(a) $29,976
Foreclosed assets 14,336 9,775 5,360 14,336 5,360
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Total non-performing assets $210,181 $45,333 $35,336 $210,181 $35,336
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Non-performing assets as a percent of loans and foreclosed assets 4.10% 1.06% 0.83% 4.10% 0.83%
Accruing loans 90 days past due $11,647 $7,766 $11,019 $11,647 $11,019
Accruing loans 90 days past due as a percent of loans 0.23% 0.18% 0.26% 0.23% 0.26%
Non-performing assets + accruing loans 90 days past due
to loans and foreclosed assets 4.33% 1.25% 1.09% 4.33% 1.09%
Net charge-offs $13,634 $13,495 $12,591 $50,265 $22,183
Net charge-offs as a percent of average loans 1.24% 1.24% 1.20% 1.17% 0.57%
Allowance for loan losses $66,050 $63,850 $61,725 $66,050 $61,725
Allowance for loan losses as a percent of period-end loans 1.29% 1.50% 1.45% 1.29% 1.45%
Allowance for loan losses to NPAs + accruing loans
90 days past due 29.78% 120.25% 133.16% 29.78% 133.16%
Provision for loan losses $15,834 $13,495 $17,116 $54,590 $36,785
Allowance for Loan Losses
Beginning Balance $63,850 $63,850 $57,200 $61,725 $47,123
Provision for loan loss 15,834 13,495 17,116 54,590 36,785
Charge-offs 14,732 14,762 14,107 54,915 27,407
Recoveries 1,098 1,267 1,516 4,650 5,224
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Net charge-offs 13,634 13,495 12,591 50,265 22,183
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Ending Balance $66,050 $63,850 $61,725 $66,050 $61,725
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Net Charge-off Information
Net charge-offs:
Commercial/real estate loans $9,110 $10,176 $8,971 $36,346 $11,961
Mortgage loans 1,211 177 269 1,764 509
Direct consumer loans 1,209 821 1,039 3,855 2,719
Indirect consumer loans 883 1,169 1,337 3,616 3,348
Finance company loans 1,221 1,152 975 4,684 3,646
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Total net charge-offs $13,634 $13,495 $12,591 $50,265 $22,183
======================================= ========================
Average loans:
Commercial/real estate loans $2,777,866 $2,739,518 $2,622,357 $2,725,894 $2,393,856
Mortgage loans 470,441 438,659 432,070 451,823 418,133
Direct consumer loans 630,511 603,394 575,826 609,131 540,885
Indirect consumer loans 386,157 410,035 439,780 411,772 405,964
Finance Company loans 110,233 110,045 117,435 111,500 115,070
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Total average loans $4,375,208 $4,301,651 $4,187,468 $4,310,120 $3,873,908
Net charge-offs to average loans:
Commercial/real estate loans 1.30% 1.47% 1.36% 1.33% 0.50%
Mortgage loans 1.02% 0.16% 0.25% 0.39% 0.12%
Direct consumer loans 0.76% 0.54% 0.72% 0.63% 0.50%
Indirect consumer loans 0.91% 1.13% 1.21% 0.88% 0.82%
Finance Company loans 4.39% 4.15% 3.30% 4.20% 3.17%
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Total net charge-offs to average loans 1.24% 1.24% 1.20% 1.17% 0.57%
(a) This total preliminary non-accrual loan amount represents (i) e fair value of PF loans ($164.9 million) that Peoples First's
management had placed on non-accrual and (ii) the book value of the legacy Hancock loans ($30.9 million) on non-accrual.
Upon completion of the final purchase accounting estimates and SoP 03-3 loan scoping and cash flow projections, this amount
may be subject to change, as Peoples First loans with accretable yields will be excluded from this amount.
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Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
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12/31/2009 9/30/2009 12/31/2008 12/31/2009 12/31/2008
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Income Statement
Interest income $82,416 $79,758 $84,801 $323,727 $335,437
Interest income (TE) 85,585 82,757 87,726 335,788 345,891
Interest expense 21,881 22,004 32,727 95,301 126,002
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Net interest income (TE) 63,704 60,753 54,999 240,487 219,889
Provision for loan losses 15,834 13,495 17,116 54,590 36,785
Noninterest income excluding
securities transactions 63,353 30,347 30,578 157,259 122,953
Securities transactions gains/(losses) 7 61 (1,174) 69 4,825
Noninterest expense 63,657 55,749 55,637 233,470 213,443
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Income before income taxes 44,404 18,918 8,725 97,694 86,985
Income tax expense 12,624 3,700 405 22,919 21,619
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Net income $31,780 $15,218 $8,320 $74,775 $65,366
=============================================== ===========================
Noninterest Income and Noninterest Expense
Service charges on deposit accounts $11,814 $11,795 $11,467 $45,354 $44,243
Trust fees 3,937 4,008 3,777 15,127 16,858
Debit card & merchant fees 2,944 2,845 2,853 11,252 11,082
Insurance fees 3,329 3,526 4,136 14,355 16,554
Investment & annuity fees 1,662 2,007 2,849 8,220 10,807
ATM fees 1,838 1,862 1,690 7,374 6,856
Secondary mortgage market operations 1,439 1,482 629 5,906 2,977
Gain on acquisition 33,623 - - 33,623 -
Other income 2,767 2,822 3,177 16,048 13,576
----------------------------------------------- ---------------------------
Noninterest income excluding
securities transactions $63,353 $30,347 $30,578 $157,259 $122,953
Securities transactions gains/(losses) 7 61 (1,174) 69 4,825
----------------------------------------------- ---------------------------
Total noninterest income including
securities transactions $63,360 $30,408 $29,404 $157,328 $127,778
=============================================== =================-=========
Personnel expense $32,858 $29,113 $28,447 $121,449 $109,773
Occupancy expense (net) 5,126 5,144 5,047 20,340 19,538
Equipment expense 2,335 2,397 2,587 9,849 10,992
Other operating expense 22,984 18,741 19,213 80,415 71,708
Amortization of intangibles 354 354 343 1,417 1,432
----------------------------------------------- ---------------------------
Total noninterest expense $63,657 $55,749 $55,637 $233,470 $213,443
=============================================== ===========================
-more-
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
-------------------------------------------- ------------------------------
12/31/2009 9/30/2009 12/31/2008 12/31/2009 12/31/2008
-------------------------------------------- ------------------------------
Period-end Balance Sheet
Commercial/real estate loans $3,160,912 $2,740,722 $2,683,188 $3,160,912 $2,683,188
Mortgage loans 739,899 402,930 427,720 739,899 427,720
Direct consumer loans 728,000 598,291 581,288 728,000 581,288
Indirect consumer loans 373,353 400,459 439,903 373,353 439,903
Finance Company loans 112,011 109,794 117,366 112,011 117,366
-------------------------------------------- ------------------------------
Total loans 5,114,175 4,252,196 4,249,465 5,114,175 4,249,465
Loans held for sale 36,112 33,869 22,115 36,112 22,115
Securities 1,612,962 1,501,289 1,681,957 1,612,962 1,681,957
Short-term investments 797,262 375,887 549,416 797,262 549,416
-------------------------------------------- ------------------------------
Earning assets 7,560,511 6,163,241 6,502,953 7,560,511 6,502,953
-------------------------------------------- ------------------------------
Allowance for loan losses (66,050) (63,850) (61,725) (66,050) (61,725)
Other assets 1,202,622 705,659 726,026 1,202,622 726,026
-------------------------------------------- ------------------------------
Total assets $8,697,083 $6,805,050 $7,167,254 $8,697,083 $7,167,254
============================================ ==============================
Noninterest bearing deposits $1,073,341 $912,092 $962,886 $1,073,341 $962,886
Interest bearing transaction deposits 1,887,229 1,453,032 1,443,633 1,887,229 1,443,633
Interest bearing Public Fund deposits 1,262,750 1,108,164 1,421,070 1,262,750 1,421,070
Time deposits 2,972,492 1,946,867 2,103,348 2,972,492 2,103,348
-------------------------------------------- ------------------------------
Total interest bearing deposits 6,122,471 4,508,063 4,968,051 6,122,471 4,968,051
-------------------------------------------- ------------------------------
Total deposits 7,195,812 5,420,155 5,930,937 7,195,812 5,930,937
Other borrowed funds 527,231 614,751 517,257 527,231 517,257
Other liabilities 136,377 115,392 109,561 136,377 109,561
Common shareholders' equity 837,663 654,752 609,499 837,663 609,499
-------------------------------------------- ------------------------------
Total liabilities & common equity $8,697,083 $6,805,050 $7,167,254 $8,697,083 $7,167,254
============================================ ==============================
Commercial Loans/Real Estate Loans
Commercial non-real estate loans $461,566 $478,752 $465,319 $461,566 $465,319
Construction and land development loans 833,938 545,824 585,821 833,938 585,821
Commercial real estate secured loans 1,333,065 1,168,618 1,084,654 1,333,065 1,084,654
Municipal loans 469,545 481,632 481,777 469,545 481,777
Lease financing 62,798 65,896 65,617 62,798 65,617
-------------------------------------------- ------------------------------
Total commercial/real estate loans $3,160,912 $2,740,722 $2,683,188 $3,160,912 $2,683,188
============================================ ==============================
Construction and Land Development Loans
Residential construction $129,505 $77,443 $104,534 $129,505 $104,534
Commercial owner occupied 159,307 106,364 83,926 159,307 83,926
Commercial non-owner occupied 121,672 79,666 96,796 121,672 96,796
Land development 270,465 176,560 192,086 270,465 192,086
Lots 152,989 105,791 108,479 152,989 108,479
-------------------------------------------- ------------------------------
Total construction and land development loans $833,938 $545,824 $585,821 $833,938 $585,821
============================================ ==============================
Commercial Real Estate Secured Loans
Commercial real estate owner occupied $682,468 $601,404 $576,575 $682,468 $576,575
Commercial real estate non-owner occupied 650,597 567,214 508,079 650,597 508,079
-------------------------------------------- ------------------------------
Total commercial real estate secured loans $1,333,065 $1,168,618 $1,084,654 $1,333,065 $1,084,654
============================================ ==============================
- more -
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
-------------------------------------------- ----------------------------
12/31/2009 9/30/2009 12/31/2008 12/31/2009 12/31/2008
-------------------------------------------- ----------------------------
Average Balance Sheet
Commercial/real estate loans 2,777,866 2,739,518 $2,622,357 $2,725,894 $2,393,856
Mortgage loans 470,441 438,659 432,070 451,823 418,133
Direct consumer loans 630,511 603,394 575,826 609,131 540,885
Indirect consumer loans 386,157 410,035 439,780 411,772 405,964
Finance Company loans 110,233 110,045 117,435 111,500 115,070
-------------------------------------------- ----------------------------
Total loans 4,375,208 4,301,651 4,187,468 4,310,120 3,873,908
Securities 1,534,772 1,478,755 1,645,603 1,561,140 1,743,998
Short-term investments 498,930 486,035 417,370 497,048 175,891
-------------------------------------------- ----------------------------
Earning average assets 6,408,910 6,266,441 6,250,441 6,368,308 5,793,797
-------------------------------------------- ----------------------------
Allowance for loan losses (64,561) (63,850) (58,163) (63,450) (53,354)
Other assets 868,974 774,676 698,751 794,909 685,946
-------------------------------------------- ----------------------------
Total assets $7,213,323 $6,977,267 $6,891,029 $7,099,767 $6,426,389
============================================ ============================
Noninterest bearing deposits $943,622 $931,188 $897,561 $935,985 $876,669
Interest bearing transaction deposits 1,525,783 1,459,377 1,429,054 1,486,438 1,415,288
Interest bearing Public Fund deposits 1,059,189 1,223,272 1,213,226 1,288,117 1,046,484
Time deposits 2,088,701 1,946,975 2,074,559 1,987,059 1,843,966
-------------------------------------------- ----------------------------
Total interest bearing deposits 4,673,673 4,629,624 4,716,839 4,761,614 4,305,738
-------------------------------------------- ----------------------------
Total deposits 5,617,295 5,560,812 5,614,400 5,697,599 5,182,407
Other borrowed funds 686,218 655,556 579,328 613,523 554,898
Other liabilities 117,717 117,326 94,804 114,270 104,279
Common shareholders' equity 792,093 643,573 602,497 674,375 584,805
-------------------------------------------- ----------------------------
Total liabilities & common equity $7,213,323 $6,977,267 $6,891,029 $7,099,767 $6,426,389
============================================ ============================
- more -
Hancock Holding Company
Financial Highlights
(amounts in thousands)
(unaudited)
Three Months Ended Twelve Months Ended
-------------------------------------------- ----------------------------
12/31/2009 9/30/2009 12/31/2008 12/31/2009 12/31/2008
-------------------------------------------- ----------------------------
Average Balance Sheet Mix
Percentage of earning assets/funding sources:
Loans 68.27% 68.64% 66.99% 67.68% 66.86%
Securities 23.95% 23.60% 26.33% 24.51% 30.10%
Short-term investments 7.78% 7.76% 6.68% 7.81% 3.04%
-------------------------------------------- ----------------------------
Earning average assets 100.00% 100.00% 100.00% 100.00% 100.00%
============================================ ============================
Noninterest bearing deposits 14.72% 14.86% 14.36% 14.70% 15.13%
Interest bearing transaction deposits 23.81% 23.29% 22.86% 23.34% 24.43%
Interest bearing Public Fund deposits 16.53% 19.52% 19.41% 20.23% 18.06%
Time deposits 32.59% 31.07% 33.19% 31.20% 31.83%
-------------------------------------------- ----------------------------
Total deposits 87.65% 88.74% 89.82% 89.47% 89.45%
Other borrowed funds 10.71% 10.46% 9.27% 9.63% 9.57%
Other net interest-free funding sources 1.64% 0.80% 0.91% 0.90% 0.98%
-------------------------------------------- ----------------------------
Total average funding sources 100.00% 100.00% 100.00% 100.00% 100.00%
============================================ ============================
Loan mix:
Commercial/real estate loans 63.49% 63.68% 62.63% 63.25% 61.80%
Mortgage loans 10.75% 10.20% 10.32% 10.48% 10.79%
Direct consumer loans 14.41% 14.03% 13.75% 14.13% 13.96%
Indirect consumer loans 8.83% 9.53% 10.50% 9.55% 10.48%
Finance Company loans 2.52% 2.56% 2.80% 2.59% 2.97%
-------------------------------------------- ----------------------------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
============================================ ============================
Average dollars (in thousands):
Loans $4,375,208 $4,301,651 $4,187,468 $4,310,120 $3,873,908
Securities 1,534,772 1,478,755 1,645,603 1,561,140 1,743,998
Short-term investments 498,930 486,035 417,370 497,048 175,891
-------------------------------------------- ----------------------------
Earning average assets $6,408,910 $6,266,441 $6,250,441 $6,368,308 $5,793,797
Noninterest bearing deposits $943,622 $931,188 $897,561 $935,985 $876,669
Interest bearing transaction deposits 1,525,783 1,459,377 1,429,054 1,486,438 1,415,288
Interest bearing Public Fund deposits 1,059,189 1,223,272 1,213,226 1,288,117 1,046,484
Time deposits 2,088,701 1,946,975 2,074,559 1,987,059 1,843,966
-------------------------------------------- ----------------------------
Total deposits 5,617,295 5,560,812 5,614,400 5,697,599 5,182,407
Other borrowed funds 686,218 655,556 579,328 613,523 554,898
Other net interest-free funding sources 105,397 50,073 56,713 57,186 56,492
-------------------------------------------- ----------------------------
Total average funding sources $6,408,910 $6,266,441 $6,250,441 $6,368,308 $5,793,797
Loans:
Commercial/real estate loans $2,777,866 $2,739,518 $2,622,357 $2,725,894 $2,393,856
Mortgage loans 470,441 438,659 432,070 451,823 418,133
Direct consumer loans 630,511 603,394 575,826 609,131 540,885
Indirect consumer loans 386,157 410,035 439,780 411,772 405,964
Finance Company loans 110,233 110,045 117,435 111,500 115,070
-------------------------------------------- ----------------------------
Total average loans $4,375,208 $4,301,651 $4,187,468 $4,310,120 $3,873,908
- more -
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Three Months Ended
--------------------------------------------------------------------------------------------
12/31/09 09/30/09 12/31/08
------------------------------- ---------------------------- -----------------------------
Interest Volume Rate Interest Volume Rate Interest Volume Rate
------------------------------- ---------------------------- -----------------------------
Average Earning Assets
Commercial & real estate loans (TE) $39,155 $2,777,866 5.60% $36,909 $2,739,518 5.35% $36,652 $2,622,357 5.57%
Mortgage loans 6,771 470,441 5.76% 6,334 438,659 5.78% 6,328 432,070 5.86%
Consumer loans 20,102 1,126,901 7.07% 20,086 1,123,474 7.09% 21,602 1,133,041 7.58%
Loan fees & late charges 81 - 0.00% 224 - 0.00% (40) - 0.00%
------------------------------- ---------------------------- -----------------------------
Total loans (TE) $66,109 $4,375,208 6.02% $63,553 $4,301,651 5.87% $64,542 4,187,468 6.14%
US treasury securities 19 10,487 0.70% 60 11,007 2.16% 53 11,380 1.84%
US agency securities 1,379 132,353 4.17% 1,384 134,487 4.12% 2,882 254,284 4.53%
CMOs 1,864 143,129 5.21% 1,968 153,511 5.13% 2,108 167,995 5.02%
Mortgage backed securities 12,853 1,047,209 4.91% 12,278 983,394 4.99% 13,564 1,024,421 5.30%
Municipals (TE) 2,552 182,520 5.59% 2,295 169,893 5.40% 2,178 149,418 5.83%
Other securities 273 19,074 5.72% 349 26,463 5.27% 411 38,105 4.31%
------------------------------- ---------------------------- -----------------------------
Total securities (TE) 18,940 1,534,772 4.94% 18,334 1,478,755 4.96% 21,196 1,645,603 5.15%
Total short-term investments 536 498,930 0.43% 870 486,035 0.71% 1,988 417,370 1.90%
Average earning assets yield (TE) $85,585 $6,408,910 5.32% $82,757 $6,266,441 5.26% $87,726 $6,250,441 5.60%
Interest-bearing Liabilities
Interest-bearing transaction deposits $1,606 $1,525,783 0.42% $1,605 $1,459,377 0.44% $3,333 $1,429,054 0.93%
Time deposits 14,480 2,088,701 2.75% 13,543 1,946,975 2.76% 18,534 2,074,559 3.55%
Public Funds 2,965 1,059,189 1.11% 4,057 1,223,272 1.32% 7,530 1,213,226 2.47%
------------------------------- ---------------------------- -----------------------------
Total interest bearing deposits $19,051 4,673,673 1.62% $19,205 4,629,624 1.65% $29,397 4,716,839 2.48%
Total borrowings 2,830 686,218 1.64% 2,799 655,556 1.69% 3,330 579,328 2.29%
Total interest bearing liab cost $21,881 $5,359,891 1.62% $22,004 $5,285,180 1.65% $32,727 $5,296,167 2.46%
Noninterest-bearing deposits 943,622 931,188 897,561
Other net interest-free funding sources 105,397 50,073 56,713
Total Cost of Funds $21,881 $6,408,910 1.35% $22,004 $6,266,441 1.39% $32,727 $6,250,441 2.08%
Net Interest Spread (TE) $63,704 3.70% $60,753 3.60% $54,999 3.14%
Net Interest Margin (TE) $63,704 $6,408,910 3.97% $60,753 $6,266,441 3.86% $54,999 $6,250,441 3.51%
- more -
Hancock Holding Company
Average Balance and Net Interest Margin Summary
(amounts in thousands)
(unaudited)
Twelve Months Ended
-----------------------------------------------------------------------------
12/31/2009 12/31/2008
----------------------------------- ---------------------------------------
Interest Volume Rate Interest Volume Rate
----------------------------------- ---------------------------------------
Average Earning Assets
Commercial & real estate loans (TE) $146,101 $2,725,894 5.36% $143,746 $2,393,856 6.00%
Mortgage loans 25,971 451,823 5.75% 24,779 418,133 5.93%
Consumer loans 80,823 1,132,403 7.14% 85,339 1,061,919 8.04%
Loan fees & late charges 837 - 0.00% 483 - 0.00%
----------------------------------- ---------------------------------------
Total loans (TE) 253,732 $4,310,120 5.89% 254,347 $3,873,908 6.57%
US treasury securities 175 10,986 1.59% 296 11,366 2.60%
US agency securities 6,778 165,725 4.09% 16,000 349,931 4.57%
CMOs 8,251 162,811 5.07% 7,465 150,692 4.95%
Mortgage backed securities 51,553 1,029,860 5.01% 52,564 1,012,274 5.19%
Municipals (TE) 9,501 166,931 5.69% 9,320 172,307 5.41%
Other securities 1,323 24,827 5.33% 2,061 47,428 4.34%
----------------------------------- ---------------------------------------
Total securities (TE) 77,581 1,561,140 4.97% 87,706 1,743,998 5.03%
Total short-term investments 4,475 497,048 0.90% 3,838 175,891 2.18%
Average earning assets yield (TE) $335,788 $6,368,308 5.27% $345,891 $5,793,797 5.97%
Interest-Bearing Liabilities
Interest-bearing transaction deposits $7,264 $1,486,438 0.49% $13,751 $1,415,288 0.97%
Time deposits 58,252 1,987,059 2.93% 70,659 1,843,966 3.83%
Public Funds 18,797 1,288,117 1.46% 26,642 1,046,484 2.55%
----------------------------------- ---------------------------------------
Total interest bearing deposits $84,313 $4,761,614 1.77% $111,052 $4,305,738 2.58%
Total borrowings 10,988 613,523 1.79% 14,950 554,898 2.69%
Total interest bearing liab cost $95,301 $5,375,137 1.77% $126,002 $4,860,636 2.59%
Noninterest-bearing deposits 935,985 876,669
Other net interest-free funding sources 57,186 56,492
Total Cost of Funds $95,301 $6,368,308 1.50% $126,002 $5,793,797 2.17%
Net Interest Spread (TE) $240,487 3.50% $219,889 3.38%
Net Interest Margin (TE) $240,487 $6,368,308 3.78% $219,889 $5,793,797 3.80%
- more -
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2008 2009
------------------------------------------- -----------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
------------------------------------------- -----------------------------------------
Per Common Share Data
Earnings per share:
Basic $0.64 $0.67 $0.51 $0.26 $0.44 $0.43 $0.48 $0.89
Diluted $0.63 $0.66 $0.50 $0.26 $0.44 $0.43 $0.47 $0.89
Cash dividends per share $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24 $0.24
Book value per share (period-end) $18.41 $18.27 $18.95 $19.18 $19.66 $19.82 $20.54 $22.74
Tangible book value per share (period-end) $16.17 $16.06 $16.77 $17.02 $17.51 $17.68 $18.42 $20.71
Weighted average number of shares:
Basic 31,346 31,382 31,471 31,757 31,805 31,820 31,857 35,481
Diluted 31,790 31,814 31,905 32,059 31,937 32,009 32,058 35,705
Period-end number of shares 31,372 31,386 31,702 31,770 31,813 31,827 31,877 36,840
Market data:
High sales price $44.29 $45.68 $68.42 $56.45 $45.56 $41.19 $42.38 $44.89
Low sales price $33.45 $38.38 $33.34 $34.20 $22.51 $30.12 $29.90 $35.26
Period end closing price $42.02 $39.29 $51.00 $45.46 $31.28 $32.49 $37.57 $43.81
Trading volume 17,204 14,527 23,562 18,544 18,026 17,040 11,676 19,538
Other Period-end Data
FTE headcount 1,877 1,903 1,941 1,952 1,938 1,911 1,903 2,240
Tangible common equity $507,287 $503,953 $531,800 $540,859 $557,013 $562,800 $587,161 $763,029
Tier I capital $512,248 $527,479 $546,379 $550,216 $558,502 $565,807 $575,856 $760,295
Goodwill $62,277 $62,277 $62,277 $62,277 $62,277 $62,277 $62,277 $62,277
Amortizable intangibles $7,388 $6,762 $6,402 $6,059 $5,705 $5,350 $4,996 $12,063
Common shares repurchased for publicly
announced plans 0 0 0 6 0 0 0 0
Performance Ratios
Return on average assets 1.30% 1.36% 1.00% 0.48% 0.79% 0.78% 0.87% 1.75%
Return on average common equity 14.13% 14.51% 10.90% 5.49% 9.12% 8.67% 9.38% 15.92%
Earning asset yield (TE) 6.28% 6.03% 6.02% 5.60% 5.26% 5.26% 5.26% 5.32%
Total cost of funds 2.48% 2.12% 2.03% 2.08% 1.75% 1.48% 1.39% 1.35%
Net interest margin (TE) 3.80% 3.91% 3.99% 3.51% 3.50% 3.78% 3.86% 3.97%
Noninterest expense as a percent
of total revenue (TE) before amortization
of purchased intangibles and
securities transactions 59.49% 60.26% 62.92% 64.61% 64.93% 61.47% 60.81% 49.82%
Common equity (period-end) as
a percent of total assets (period-end) 8.99% 9.15% 8.91% 8.50% 8.81% 8.95% 9.62% 9.63%
Leverage (Tier I) ratio 8.34% 8.57% 8.66% 8.06% 7.85% 8.13% 8.33% 10.65%
Tangible common equity ratio 7.98% 8.13% 7.97% 7.62% 7.92% 8.06% 8.71% 8.85%
Net charge-offs as a
percent of average loans 0.32% 0.27% 0.42% 1.20% 0.67% 1.50% 1.24% 1.24%
Allowance for loan losses as
a percent of period-end loans 1.46% 1.41% 1.40% 1.45% 1.49% 1.49% 1.50% 1.29%
Allowance for loan losses to
NPAs + loans 90 days past due 265.81% 203.06% 189.69% 133.16% 119.72% 117.14% 120.25% 29.78%
Loan/deposit ratio 72.10% 74.82% 77.46% 74.58% 72.51% 74.95% 77.36% 77.89%
Noninterest income excluding
securities transactions as a percent
of total revenue (TE) 36.78% 36.52% 34.46% 35.73% 34.00% 36.65% 33.31% 49.86%
- more -
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2008 2009
------------------------------------------- -------------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
------------------------------------------- -------------------------------------------
Asset Quality Information
Non-accrual loans $12,983 $18,106 $21,875 $29,976 $38,327 $34,189 $35,558 $195,845
Foreclosed assets 3,619 1,693 2,197 5,360 5,946 8,884 9,775 14,336
------------------------------------------- -------------------------------------------
Total non-performing assets $16,602 $19,799 $24,072 $35,336 $44,273 $43,073 $45,333 $210,181
Non-performing assets as a percent of loans
and foreclosed assets 0.46% 0.52% 0.59% 0.83% 1.04% 1.01% 1.06% 4.10%
Accruing loans 90 days past due $3,340 $6,449 $6,082 $11,019 $8,306 $11,435 $7,766 $11,647
Accruing loans 90 days past due as
a percent of loans 0.09% 0.17% 0.15% 0.26% 0.20% 0.27% 0.18% 0.23%
Non-performing assets + accruing loans
90 days past due to loans and
foreclosed assets 0.55% 0.69% 0.74% 1.09% 1.24% 1.27% 1.25% 4.33%
Net charge-offs $2,933 $2,495 $4,164 $12,591 $7,117 $16,019 $13,495 $13,634
Net charge-offs as
a percent of average loans 0.32% 0.27% 0.42% 1.20% 0.67% 1.50% 1.24% 1.24%
Allowance for loan losses $53,008 $53,300 $57,200 $61,725 $62,950 $63,850 $63,850 $66,050
Allowance for loan losses as a
percent of period-end loans 1.46% 1.41% 1.40% 1.45% 1.49% 1.49% 1.50% 1.29%
Allowance for loan losses to NPAs +
accruing loans 90 days past due 265.81% 203.06% 189.69% 133.16% 119.72% 117.14% 120.25% 29.78%
Provision for loan losses $8,818 $2,787 $8,064 $17,116 $8,342 $16,919 $13,495 $15,834
Net Charge-off Information
Net charge-offs:
Commercial/real estate loans $834 $600 $1,556 $8,971 $4,536 $12,524 $10,176 $9,110
Mortgage loans 0 61 179 269 177 199 177 1,211
Direct consumer loans 588 442 650 1,039 599 1,226 821 1,209
Indirect consumer loans 463 681 867 1,337 847 717 1,169 883
Finance company loans 1,048 711 912 975 958 1,353 1,152 1,221
------------------------------------------- -------------------------------------------
Total net charge-offs $2,933 $2,495 $4,164 $12,591 $7,117 $16,019 $13,495 $13,634
------------------------------------------- -------------------------------------------
Average loans:
Commercial/real estate loans $2,224,695 $2,272,057 $2,453,154 $2,622,357 $2,688,557 $2,696,500 $2,739,518 $2,777,866
Mortgage loans 399,374 413,076 427,752 432,070 445,741 452,324 438,659 470,441
Direct consumer loans 514,441 526,752 546,079 575,826 605,685 596,725 603,394 630,511
Indirect consumer loans 386,985 386,565 410,110 439,780 430,965 420,444 410,035 386,157
Finance Company loans 113,113 113,555 116,140 117,435 114,428 111,358 110,045 110,233
------------------------------------------- -------------------------------------------
Total average loans $3,638,608 $3,712,005 $3,953,235 $4,187,468 $4,285,376 $4,277,351 $4,301,651 $4,375,208
Net charge-offs to average loans:
Commercial/real estate loans 0.15% 0.11% 0.25% 1.36% 0.68% 1.86% 1.47% 1.30%
Mortgage loans 0.00% 0.06% 0.17% 0.25% 0.16% 0.18% 0.16% 1.02%
Direct consumer loans 0.46% 0.34% 0.47% 0.72% 0.40% 0.82% 0.54% 0.76%
Indirect consumer loans 0.48% 0.71% 0.84% 1.21% 0.80% 0.68% 1.13% 0.91%
Finance Company loans 3.73% 2.52% 3.12% 3.30% 3.40% 4.87% 4.15% 4.39%
------------------------------------------- -------------------------------------------
Total net charge-offs to average loans 0.32% 0.27% 0.42% 1.20% 0.67% 1.50% 1.24% 1.24%
- more -
Hancock Holding Company
Quarterly Financial Data
(amounts in thousands, except
per share data and FTE headcount)
(unaudited)
2008 2009
--------------------------------------- ---------------------------------------
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
--------------------------------------- ---------------------------------------
Income Statement
Interest income $84,772 $81,732 $84,132 $84,801 $81,448 $80,105 $79,758 $82,416
Interest income (TE) 87,227 84,164 86,774 87,726 84,392 83,054 82,757 85,585
Interest expense 34,345 29,573 29,357 32,727 28,002 23,413 22,004 21,881
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Net interest income (TE) 52,882 54,591 57,417 54,999 56,390 59,641 60,753 63,704
Provision for loan losses 8,818 2,787 8,064 17,116 8,342 16,919 13,495 15,834
Noninterest income excluding
securities transactions 30,769 31,412 30,194 30,578 29,055 34,504 30,347 63,353
Securities transactions gains/(losses) 5,652 426 (79) (1,174) 0 0 61 7
Noninterest expense 50,134 52,189 55,483 55,637 55,838 58,226 55,749 63,657
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Income before income taxes 27,896 29,021 21,343 8,725 18,321 16,051 18,918 44,404
Income tax expense 7,839 8,037 5,338 405 4,290 2,305 3,700 12,624
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Net income $20,057 $20,984 $16,005 $8,320 $14,031 $13,746 $15,218 $31,780
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Noninterest Income
and Noninterest Expense
Service charges on deposit accounts $10,789 $10,879 $11,108 $11,467 $10,503 $11,242 $11,795 $11,814
Trust fees 4,176 4,575 4,330 3,777 3,327 3,855 4,008 3,937
Debit card & merchant fees 2,540 2,884 2,805 2,853 2,568 2,895 2,845 2,944
Insurance fees 4,340 4,259 3,819 4,136 3,452 4,048 3,526 3,329
Investment & annuity fees 2,810 2,727 2,421 2,849 2,861 1,691 2,007 1,662
ATM fees 1,691 1,757 1,718 1,690 1,779 1,895 1,862 1,838
Secondary mortgage market operations 778 753 817 629 1,158 1,827 1,482 1,439
Other income 3,645 3,578 3,176 3,177 3,407 7,051 2,822 2,767
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Noninterest income excluding
securities transactions $30,769 $31,412 $30,194 $30,578 $29,055 $34,504 $30,347 $63,353
Securities transactions gains/(losses) 5,652 426 (79) (1,174) 0 0 61 7
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Total noninterest income including
securities transactions $36,421 $31,838 $30,115 $29,404 $29,055 $34,504 $30,408 $63,360
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Personnel expense $25,631 $27,031 $28,664 $28,447 $30,775 $28,703 $29,113 $32,858
Occupancy expense (net) 4,601 4,702 5,188 5,047 5,055 5,016 5,144 5,126
Equipment expense 2,909 2,785 2,711 2,587 2,534 2,583 2,397 2,335
Other operating expense 16,628 17,307 18,560 19,213 17,120 21,570 18,741 22,984
Amortization of intangibles 365 364 360 343 354 354 354 354
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Total noninterest expense $50,134 $52,189 $55,483 $55,637 $55,838 $58,226 $55,749 $63,657
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